Real Estate Impacted by Trump’s Tariff Reversal

If you’ve been feeling a little off balance lately, you’re not alone. The real estate industry — and really, the entire economy — is feeling the impact of Trump’s tariffs. It’s been a week of fake headlines, real reversals and a whole lot of uncertainty.

Less than a month ago, I wrote that the impact of tariffs was “rippling through the industry.” While some in the industry maintain that the actual impact is still just a ripple — this week felt more like a jolt.

Last week, President Trump stunned global markets with a sweeping tariff plan that sent investors running for cover. Then came the about-face: a 90-day pause on those new tariffs (with the glaring exception of China, now hit with a 125 percent rate).

After Trump pressed pause, Wall Street briefly exhaled. Real estate stocks rebounded. REITs like Vornado and Hudson Pacific saw double-digit bumps and brokerages like Douglas Elliman and Compass notched healthy gains. But the broader picture remained muddy: despite the one-day rebound, many of those same stocks are down for the week, and volatility remains the norm.

The aftershocks hit quickly. In New York, agents report a growing number of buyers hitting pause, pulling out of contracts or delaying mortgage applications. Data from UrbanDigs shows canceled Manhattan contracts more than doubled last week, signalling that fear has crept into the market.

Commercial leasing, especially in the retail and office sectors, is also taking a hit. Multiple brokers say tenants — particularly those with international ties — are walking away from negotiations as they wait for clarity on buildout costs and the economic outlook. JPMorgan Chase, in a note to investors, warned against commercial real estate debt, citing a “base-case recession.”

Meanwhile, renters are feeling the squeeze. Rents in New York remain sky-high — with the Manhattan median rent hovering near $4,500. That’s not expected to change anytime soon, with peak leasing season on the horizon.

Of course, the top of the market plays by different rules. Many luxury buyers, especially those paying in cash or crypto, appear largely unbothered by the turmoil.

But perhaps the most surprising twist of the week was that the real estate industry — typically not one to shy away from airing grievances — stayed largely mum throughout the tariff saga. While Wall Street titans sounded the alarm, most developers and major players kept their cool, perhaps because they’ve already weathered storms from high interest rates and declining valuations.

The 90-day pause on tariffs offers a brief reprieve, but it’s not a resolution. China remains a wildcard, mortgage rates are under pressure and buyer confidence is on shaky ground.

Zillow announces private listing ban

Zillow announced a new policy that bans private listings from its platform as part of a standards rollout reinforcing the National Association of Realtors’ Clear Cooperation Policy. The policy comes amid heightened industry debate over the value of private listings that has pitted larger brokerages like Compass and Anywhere Real Estate against aggregators, MLSes and independent brokerages.

Coast to coast: Californians are ditching the Golden State for Palm Beach

Palm Beach is seeing a new wave of luxury buyers — and this time, they’re coming from California. Agents report a dramatic uptick in West Coast transplants, driven by a mix of wildfires, political frustrations and high taxes in the Golden State.

Tracking $100M that Fannie’s blacklisted investors put into Chicago real estate

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Adam Neumann lands $155M loan for Miami Flow House condos

Adam Neumann secured a $155 million loan for his Flow House condo tower in downtown Miami, a key step for the WeWork founder’s latest real estate venture. The construction and inventory loan will fund the 40-story, 466-unit building rising within the massive 27-acre Miami Worldcenter development.

Tishman Speyer in talks to buy Soho office for around $120M

Tishman Speyer is nearing a deal to buy a Soho office building for roughly $120 million, marking its first Manhattan office acquisition since 2019. The potential purchase signals Tishman’s return to the New York office market after years of focusing on other cities and developing the 2.8 million-square-foot Spiral office building Spiral near Hudson Yards.

Son of billionaire Stuart Miller faces charges tied to alleged domestic violence incident

David Miller, son of Lennar co-CEO Stuart Miller, was taken into custody on charges related to a domestic violence incident last month at his father’s waterfront Star Island estate. The real estate agent with Berkshire Hathaway HomeServices EWM Realty faces three charges: felony robbery by sudden snatching, felony criminal mischief and a misdemeanor domestic violence battery charge.

Suburban Chicago office complex sells for 95% discount

Woodcrest Capital bought a distressed Lincolnshire office complex at a stunningly steep 95 percent discount last week. The $6.2 million sale, which equates to about $7 per-square-foot, is a tiny fraction of the $148 million Phoenix-based Vereit paid for the complex in 2012. A potential redevelopment of the site could signal the next phase of pandemic recovery for the Chicago area office market.

Chetrit Org inks loan extension with Rialto for Soho properties
Rialto Capital provided the Chetrits with a three-year loan extension on two Soho properties. The developer fell behind on payments on the $76.5 million loan backed by 459 Broadway and 427 Broadway during the pandemic in 2021, but Michael Chetrit inked a deal with the lender to extend the loan and bring it out of special servicing.